The bank has cut costs including an 8% reduction of personnel and Banorte’s management has improved ROE, taking it from 11.4% to 18.7%. Banorte also grew its loan portfolio by 18% in real terms, thanks to a significant increase in consumer loans.
“Mexico today provides a huge window of development. Banking penetration is very low, and there is a great demand for unattended financial services. Banorte has been positioning itself in order to take advantage of this tremendous opportunity,” says Luis Peña, Banorte’s CEO. “Banorte is posting record financial performance and profitability. The market has given us a vote of confidence for our permanent effort to improve the bank’s long-term competitive position.
“This has been reflected in better valuation ratios, reaching a record $3.3bn market cap, and an increase of 80% in Banorte’s share price during 2004, almost doubling the 47% gain in the IPC stock market index. Our stock is currently the ninth most active stock in the Mexican exchange.”
